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WEDNESDAY, JULY 25, 1990
WHO
"A NEGLIGENT OFFICER WILL BE A PERSON NECESSARY PRECAUTIONS TO PREVENT A CORPORATION FROM INSIDER DEALING, MR NENDICK SAID.
Fr
FAILS то TAKE PERPETRATING AN
HE SAID CLAUSE 13 WAS ALSO AMENDED BY ADDING A NEW SUB-CLAUSE (5) TO ENSHRINE THE RIGHT TO BE HEARD BEFORE ANY FINDING IS MADE BY THE TRIBUNAL, WHILE CLAUSE 27 WAS AMENDED BY ADDING A NEW SUB-CLAUSE (2) TO EMPOWER THE COURT OF APPEAL TO MAKE ORDERS AS REGARDS AN APPEAL AGAINST A DECISION OF THE TRIBUNAL.
CLAUSE 19 (2) (P) (IV) WAS AMENDED TO EMPOWER THE TRIBUNAL то FURNISH A COPY OF THE TRIBUNAL REPORT TO ANY PROFESSIONAL BODY OF WHICH AN INSIDER DEALER OR A NEGLIGENT OFFICER WAS A MEMBER.
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"THIS WILL SERVE AS A FORMAL NOTICE TO THE PROFESSIONAL BODY UPON WHICH IT MAY CONSIDER TAKING APPROPRIATE DISCIPLINARY ACTION, MR NENDICK SAID.
HE SAID CLAUSE 20(1)(C) WAS AMENDED TO REMOVE ANY CRIMINAL CONNOTATION ASSOCIATED WITH THE WORD "FINE" AND TO ALLOW THE TRIBUNAL TO IMPOSE A PENALTY UPON AN INSIDER DEALING CORPORATION OR AN OFFICER OF SUCH A CORPORATION WHO HAD FAILED TO DISCHARGE HIS DUTY TO PREVENT INSIDER DEALING, REGARDLESS OF WHO MADE THE PROFIT OR AVOIDED THE
LOSS.
"THIS IS TO GIVE THE TRIBUNAL THE NECESSARY FLEXIBILITY ΤΟ IMPOSE PENALTIES AS IT SEES FIT IN ALL THE CIRCUMSTANCES, MR NENDICK SAID.
THE BILL WAS PASSED.
0
AIM IS TO ENSURE RIGHT INVESTMENT ENVIRONMENT
THE MAIN OBJECTIVE FOR THE LEGCO AD HOC GROUP VESTED WITH THE RESPONSIBILITY TO STUDY THE SECURITIES (INSIDER DEALING) BILL 1989 WAS TO STRIKE A BALANCE IN THE LAW TO KEEP HONG KONG AN ATTRACTIVE MARKET FOR INVESTORS, THE HON STEPHEN CHEONG SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
SPEAKING IN THE RESUMED DEBATE ON THE BILL, MR CHEONG SAID THE AD HOC GROUP, AFTER 13 MONTHS' DELIBERATION, HAD TO ENSURE THAT THE LEGISLATION EVENTUALLY PASSED WAS EFFECTIVE BUT NOT TO THE EXTENT OF KILLING THE MARKET.
HE NOTED THAT MANY OF THE CHANGES TO THE DRAFT BILL WOULD ADDRESS THE VARIOUS CONCERNS IN THE MARKET AS EXPRESSED BY DIFFERENT ORGANISATIONS AND INDIVIDUALS ABOUT THE SCOPE OF THE BILL.
/MR CHEONG